Investors interested in Wireless Non-US stocks are likely familiar with Orange (ORAN - Free Report) and BlackBerry (BB - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, both Orange and BlackBerry are sporting a Zacks Rank of # 1 (Strong Buy). Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ORAN currently has a forward P/E ratio of 12.51, while BB has a forward P/E of 86.46. We also note that ORAN has a PEG ratio of 0.50. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BB currently has a PEG ratio of 4.66.
Another notable valuation metric for ORAN is its P/B ratio of 1.07. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, BB has a P/B of 2.10.
These are just a few of the metrics contributing to ORAN's Value grade of A and BB's Value grade of C.
Both ORAN and BB are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ORAN is the superior value option right now.